GST Council sets up GoM on reduction in GST on health insurance; cuts rate on cancer drugs
New Delhi, Sep 9: GST Council headed by Union Finance Minister Nirmala Sitharaman on Monday decided to set up a Group of Ministers (GoM) on reducing tax rate on life and health insurance and cut GST on cancer drugs and namkeens.
Briefing reporters on the outcome of the 54th GST Council meeting, Sitharaman said it has decided to have a Group of Ministers (GoM) to look into the GST rate on life and health insurance.
The GoM will be headed by Bihar Deputy Chief Minister Samrat Choudhary, who is currently heading the panel on GST rate rationalisation.
Sitharaman said that new members would be joining the GoM to look into GST on health insurance.
The GoM will be submitting its report by October end, she said.
The issue of taxation of insurance premiums had figured in Parliament discussions with Opposition members demanding that health and life insurance premiums be exempt from the GST. Even Transport Minister Nitin Gadkari wrote to Sitharaman on the issue.
Sitharaman in her reply to a discussion on the Finance Bill had said that 75 per cent of the GST collected goes to states and the Opposition members should ask their state finance ministers to bring the proposal at the GST Council.
The GST Council in its meeting on Monday also decided to cut tax rates on cancer drugs to 5 per cent from 12 per cent and namkeens from 18 per cent to 12 per cent.
Sitharaman further said that a GoM will also be constituted to deal with the issue concerning compensation cess which will cease after March 2026.
The Council also deliberated on the GoM's status report on rate rationalisation and online gaming.
The minister further said that a committee of secretaries headed by Additional Secretary (Revenue) will be formed on the IGST which is currently facing a negative balance. It will look into ways to retrieve the money from states.
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Consumer Affairs Minister slams air purifier firms for false claims ahead of pollution season
New Delhi, Oct 14: Consumer Affairs Minister Pralhad Joshi on Monday criticised air purifier manufacturers for making false claims about their products, and called for increased consumer awareness ahead of winter when air pollution worsens in Delhi due to crop stubble burning in neighbouring states.
Addressing an event commemorating World Standards Day, Joshi expressed concern over misleading marketing tactics adopted by some air purifier companies.
"Discussion on air pollution has begun. Looking at Air Quality Index (AQI) on mobiles, people out of fear, go and buy air purifiers. Air purifiers make such false claims. ...We see air purifiers and so much is written but nothing is there in it. There is just a fan in it, yet claims are still made," the minister stated.
Joshi called for a collaborative approach involving the Bureau of Indian Standards (BIS), the consumer affairs ministry and consumers to address the issue.
While praising the BIS for their "exceptionally wonderful job" in recent years, the minister emphasized that more needs to be done.
"I do not blame BIS for this. BIS in the last few years has done an exceptionally wonderful job. But both BIS and the consumer affairs ministry and consumers together need to create awareness. It is important, and I strongly feel (this way)," the minister said stressing the collective responsibility in combating misleading product claims.
He emphasized the government's commitment to ensuring every Indian has access to safe, reliable, and high-quality products and services.
These comments come as concerns grow about air quality in major Indian cities and expansion of the air purifier market.
Joshi also announced plans to make BIS standards mandatory for public procurement on the Government e-Marketplace (GeM) portal. "BIS standards are partially implemented on GeM. We'll try to make it mandatory."
The minister highlighted the government's focus on quality standards, noting that Cabinet proposals now include global standard notes.
"These days, the tradition has started in the Union Cabinet. Wherever a bill to be introduced in Parliament comes before the Cabinet, the global standard note comes with it. That has been made mandatory for the Cabinet," he said.
This note mentions which countries perform best in the particular field, rules and how India can achieve it. "So, we have to match every Cabinet note with the global standards. This helps our government to make decisions to set high standards whether it is quality infrastructure or urban metro trains."
Implementation of standards at national level has been given a top priority by the government and is actively bringing more products under mandatory quality controls, he said.
He said that over 22,300 standards are currently in force, with 94 per cent harmonized with international standards. The number of Quality Control Orders has risen from 14 (covering 106 products) in 2014 to 174 (covering 732 products) now.
Also, 94 per cent of Indian Standards are harmonised with International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC).
Joshi stressed the interdependence of consumers and producers in fostering a quality ecosystem. He urged the BIS to take on more leadership roles in international standardization and fast-track the development of new standards.
World Standards Day, observed annually on October 14, aims to raise awareness about standards and their role in achieving Sustainable Development Goals.
